Capitol Benefits Group News & Updates
Proposed Rule Would Extend ACA Reporting Furnishing Deadlines
Until the Rule is Finalized, the General Furnishing Deadline (Jan. 31) Continues to Apply
On Nov. 22, 2021, the IRS released a proposed rule that would extend the annual furnishing deadlines for Sections 6055 and 6056 reporting under the Affordable Care Act (ACA). This proposed rule would essentially make permanent the furnishing deadline extension that has been provided for each prior year of ACA reporting. Specifically, the proposed rule would:
* Extend the due date for furnishing statements to individuals under Sections 6055 and 6056 by 30 days from Jan. 31 each year; and
* Provide additional penalty relief related to furnishing statements to individuals under Section 6055 for every year in which the individual mandate penalty is zero. Under this relief, employers would generally only have to provide Form 1095-B to covered individuals upon request.
The proposed rule also provides that transitional good-faith relief from penalties for the reporting of incorrect or incomplete information on information returns or statements that has been provided in past years is not available for reporting for tax year 2021 and subsequent years. This good-faith relief was intended to be transitional to accommodate public concerns with implementing new reporting requirements under the ACA. These reporting requirements have now been in place for six years, and the IRS has determined that transitional relief is no longer appropriate. Therefore, the IRS has discontinued the transitional good-faith relief after tax year 2020.
This rule is in proposed form and has not been finalized. As a result, the general furnishing deadline (Jan. 31) continues to apply. However, even if the rule is finalized, reporting entities are generally encouraged to furnish statements to individuals as soon as they are able.
Supreme Court to Hold Hearings on Federal Vaccine Mandates
OSHA Will Delay Enforcement Until January 10
On Dec. 22, 2021, the U.S. Supreme Court announced that it will hear oral arguments regarding whether two federal vaccine requirements can be enforced while legal appeals are in process. On Jan. 7, 2022, the Court will consider requests on the Occupational Safety and Health Administration's (OSHA) federal emergency temporary standard (ETS) for COVID-19 and the Centers for Medicare & Medicaid Services (CMS) emergency rule requiring COVID-19 vaccination of certain health care workers.
OSHA ETS
The ETS establishes a vaccine-or-test requirement for private employers with 100 or more employees. These employers must require employees to be fully vaccinated against COVID-19 or be tested on a weekly basis and wear face coverings at work.
OSHA issued the ETS on Nov. 5, 2021. It was later blocked nationwide by a federal appeals court and then reinstated by another court. Groups challenging the rule have asked the Supreme Court to stay the reinstatement while they appeal the ruling. OSHA plans to delay enforcement of the ETS until at least Jan. 10, 2022.
CMS Rule for Health Care Workers
The CMS rule requires Medicare- and Medicaid-certified providers and suppliers to establish a policy requiring covered staff members to be vaccinated against COVID-19 unless they are eligible for an exemption based on recognized medical conditions or religious beliefs.
Multiple federal court rulings have resulted in the CMS rule being blocked in a number of states. While CMS has indicated that it will not enforce the rule for now due to pending litigation, the Supreme Court will consider whether the lower court rulings should remain in place during the appeals process.
IRS Announces 2022 Standard Mileage Rates
Business Mileage, Medical and Moving Rates Increase
On Dec. 17, 2021, the IRS announced the 2022 optional standard mileage rates, which are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on January 1, 2022, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
* 58.5 cents per mile driven for business use, up 2.5 cents from the rate for 2021;
* 18 cents per mile driven for medical purposes, or moving purposes for qualified active duty members of the Armed Forces, up two cents from the rate for 2021; and
* 14 cents per mile driven in service of charitable organizations. This rate is set by statute and remains unchanged from 2021.
Under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station.
CDC Recommends Shorter COVID-19 Isolation and Quarantine
Asymptomatic Individuals Must Now Isolate For Five Days
On Monday, Dec. 27, 2021, the Centers for Disease Control and Prevention (CDC) reduced its recommended periods for COVID-19 isolation (confirmed COVID-19 infection) and quarantine (potential COVID-19 exposure).
Asymptomatic individuals infected with COVID-19 have been told to isolate for five days from the day they test positive-down from the original 10. After, they should wear a mask when around others for an additional five days.
The CDC's new quarantine guidance was similarly updated. People who are unvaccinated or are more than six months out from their second vaccine dose (or more than two months after getting the Johnson & Johnson vaccine) and not yet boosted should avoid others for five days after COVID-19 exposure. Then, they should diligently wear a mask for an additional five days afterward.
Notably, the CDC said those who have received COVID-19 booster shots don't need to quarantine, but they should wear a mask around others for at least 10 days after potential exposure.
In all cases of isolation and exposure, the CDC said it's best to take a COVID-19 test as well.
What's Next?
The CDC has shortened its quarantine and isolation timetables as health experts learn more about COVID-19 and its strains, such as the coronavirus Omicron variant. The agency's decision was "motivated by science demonstrating that the majority of COVID-19 transmission occurs early in the course of illness, generally in the 1-2 days prior to the onset of symptoms and the 2-3 days after."
However, shortened isolation and quarantine times doesn't mean the risk of COVID-19 is going away or that prevention measures should be relaxed.
In its release, the CDC urged all eligible Americans to get vaccinated and boosted if they haven't been already.
Individuals interested in learning more about official COVID-19 guidance should visit the CDC website.
The content herein is provided for general information purposes only, and does not constitute, legal, tax, or other advice or opinions on any matters. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy.
Webinar Archive
Join our legal content attorneys as they provide an overview of Section 6055 and 6056 reporting for 2021 and learn how you can help your clients avoid costly penalties.
In this session, we'll discuss:
* How to accurately report to the IRS
* Information on the updated versions of the required IRS forms and instructions for 2021
* Answers to common questions about the reporting process
Watch Last Month’s Webinar HERE